Invest in Reit ETF or invest in Reits DIY?

Many people have asked me whether they should invest in any of the 3 available Reit ETFs.

My counter question is whether they believe they can outperform the Reit ETF.

I personally do not invest in any of the Reit ETFs, as I trust that I can outperform the Reit ETFs. But there is another reason:

Overheads

I call it overheads. There are 2 main overheads:

  1. Annual expense ratio of 0.5% is already built into the price.
  2. 17% withholding tax.

Many people do not know about the 17% withholding tax that are applied on all Reits of Singapore Properties. For example, when Capitalmall Trust pay dividends to the ETF, 17% of the DPU is taxed by our Singapore government. Only 83% of the DPU is received by the ETF!

In the long run, I advise everyone who has the time to learn to invest in Reits on your own instead of relying on ETFs.


  • I'm a remisier with Maybank Kim Eng, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please contact me regarding how to become my client; It's free!